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Financial Planning / Foolish 401(k)s


Subject:  Re: Fast Question Date:  12/6/2007  7:48 PM
Author:  VikingErik Number:  22710 of 26154

Obviously, they will not be taking any 401(k) money from our next check

Actually, they may still do so. The well-known annual 401k limit is for tax-deductible contributions, but once that's reached, after-tax money can still go into the 401k. This is a bad deal, since it's strictly inferior to investing that money in a regular taxable account instead. You might want to check if this will happen -- it did to me last year and now I'm stuck with $600 of after-tax money in my 401k.

- Erik
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